MedMen unveils plans to raise US74mln from offering of class B voting shares, sale of licenses in non-core states

The company said it expects to raise $54 million by selling licences in Arizona and in Illinois

Separately, MedMen plans to raise $20 million by offering class B shares at 43 cents each

MedMen Enterprises Inc. (OTCMKTS:MMNFF) (CSE:MMEN) saw its shares hold steady pre-market on Friday as the cannabis retailer unveiled plans for an offering of class B subordinate voting shares and the sale of licenses in states viewed as non-core to raise $74 million.

The Los Angeles-based company said it expects to raise $54 million by selling licences in Arizona, including three vertically integrated licenses, and a cultivation and manufacturing license in Illinois.

In a statement, MedMen said: "The company will continue to explore the sale of other non-core assets and will focus on deepening its retail market share in California, Nevada, Florida, Illinois, Massachusetts and New York.”

Separately, the firm added, it plans to raise $20 million by offering class B shares at 43 cents each, downsized from an original $27 million, to limit dilution for existing shareholders.

The group said the proceeds will be used to finance working capital, and to expand the company's retail footprint in its core markets.

MedMen shares were last traded at 69 cents in Toronto and 53 cents in New York.

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